Answered>Order 26077

Hello, I am looking for someone to write an essay on How have threats/challenges from the external environment affected a Missouri : based firm now or in the recent past. It needs to be at least 1250 words.

The company’s growth largely depends upon such technologies that the company has developed through in-house scientific research and development programs. It will be pertinent to have a brief glance at Monsanto’s financials for last three years that are enumerated as per the following. Years ended Aug. 31&nbsp. 2010 2009 2008 % Change in 2010 over 2009 Operating Results EBIT&nbsp. $1572 $3007 $2891 (48%) Net Income Attributable to Monsanto (In Millions) $1,109 $2,109 $2,024 (47%) Diluted Earnings per Share&nbsp. $2.01 $3.80 $3.62 (47%) Free Cash Flow (In Millions) $564 $1,523 $795 (63% ) Source: http:// It should be noted that there is a sharp fall in net income of Monsanto during the year 2010 which the company sources attribute to the collapse of herbicide business. (Monsanto Quarterly…2010) Monsanto’s businesses belong to the new age biotechnology field that is itself ingrained with a lot of controversies. The corn produced through the seeds of Monsanto is known as Bt corn. In the corn’s DNA, a gene from soil bacteria known as Bt (Bacillus thuringiensis) is infused that is capable of producing Bt-toxin. This is a kind of pesticide and destroys certain insects when they attack the crop. Thus, external use of pesticide is reduced drastically and yield per acre increases manifold. Using this technology, the company has developed seeds for various crops such as cotton, corn, oilseeds, rice and many more. (Smith, 2011) With the above back ground, it will be appropriate to examine the social, political, legal, economical threats that the company has been facing as many of these threats are capable to derail its growth and development if not tackled cautiously. Threat from Generic Producers Monsanto’s operations and rising profits depended largely on its patented product lines. One of the biggest threat that is looming large from the external environments is from the low-cost generic manufacturers hailing from China who have started snatching the market from the Monsanto’s off patent product ‘Roundup’, a kind of pesticide, which has already given a big jolt to Monsanto this year reducing its sale by 56 percent to $269m from $614m in the quarter last year. (Monsanto Quarterly…2010) Sociopolitical Threats and Issues Monsanto’s operations are spread to more than 100 countries. Monsanto’s major market has been U.S. The company has been trying heavily to enter into Europe to cultivate genetically modified seeds but without much of a success. Till date Europe has never shown any inclination to grow genetically modified (GM) foods. Most countries in Europe have not given green signal to this technology. They feel that until it is proved safe for human consumption and for environment they are not ready to take a risk with genetically engineered crops. The company is constantly coaxing the authorities that their seeds will yield higher crops, use less water and pesticides but with no avail. Apart, the company also claims that their modified variety of rice will be beta-carotene rich and can prevent the deficiency of vitamin A, yet such arguments are not altering public opinion in Europe. Britain allowed only one trial of GM potatoes in Cambridgeshire but so far not allowed for any other major trials in their soil. So is the case with European Union where officials are not ready to lift restrictions imposed on its cultivation. (Will Europe…2008) A Large Lobby against Monsanto’s GM Products There has been widespread opposition

 
"Not answered?"
Get the Answer